ISLAMABAD: The Power Division described the recent review of K-Electric’s tariff as a “major step forward” for the people of Karachi, emphasizing that it submitted the review on time and decided it purely on merit.

In a statement, the division said that some groups are misrepresenting NEPRA’s decision, even though it is based on fairness, stability, and transparency. It clarified that the government has now aligned K-Electric’s tariff structure with the standards applied to all other power distribution companies across Pakistan.

The Power Division added that NEPRA has removed the previous system that allowed companies to record profits or losses due to foreign currency fluctuations. From now on, all distribution companies (DISCOs) will operate under uniform performance, recovery, and transparency standards.

The ministry explained that the review does not mean a cut in legitimate recoveries. Instead, it is part of a broader structural correction process. It also rejected claims that NEPRA’s decision has taken away any financial relief from Karachi consumers, clarifying that the multi-year tariff (MYT) only relates to the company’s revenue requirements, not to consumer electricity rates.

It further emphasized that consumer tariffs are set by the Government of Pakistan under the national uniform tariff policy. The Power Division described reports of a Rs7 per unit subsidy withdrawal as “false and misleading.” The Power Division stressed that subsidies for K-Electric users remain intact under the same national policy and that any reduction only reflects a smaller budget burden, not the removal of subsidies.

The statement also highlighted NEPRA’s independence and impartiality, noting that the regulator decided on its own authority without any government influence.

Earlier, NEPRA had reduced K-Electric’s average base tariff by Rs7.6 per unit from Rs39.97 to Rs32.37 per unit after reviewing the company’s Multi-Year Tariff (MYT) for FY2024–FY2030.

The review, filed by the Power Division along with other motions, examined various aspects such as generation, transmission, distribution, investment plans, and loss assessments.

NEPRA also maintained its earlier position on K-Electric’s Rs50 billion write-off claims but made several amendments in other tariff-related areas.

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